Civil Services Prep

Prelims 2023 · Economy · Question 68

Consider the following statements: Statement-I: India accounts for 3.2% of global export of goods. Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India's 'Production-linked Incentive' scheme. Which one of the following is correct in respect of the above statements?

  1. Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
  2. Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
  3. Statement-I is correct but Statement-II is incorrect
  4. Statement-I is incorrect but Statement-II is correct

Answer

Statement-I is incorrect but Statement-II is correct

Statement-I: Incorrect. India’s share in global merchandise exports has generally been around 1.7%–1.9%, not 3.2%. The 3.2% figure is closer to India’s share in global services exports, not goods exports. Verdict: Incorrect.

Statement-II: Correct. Many Indian firms and some foreign firms operating in India have indeed availed benefits under the PLI scheme in sectors such as electronics, pharmaceuticals, telecom, etc. Verdict: Correct.

Therefore: Statement-I is incorrect but Statement-II is correct. Answer: (d).

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